Working capital will affect incremental cash flows if:
A) current assets change more than current liabilities.
B) current liabilities change more than current assets.
C) net working capital changes from previous levels.
D) inventory changes from previous levels.
Ans: C) net working capital changes from previous levels.
You might also like to view...
For the month of September, Countrywide Sales, Inc. recorded gross pay of $74,500. The net pay for the month amounted to $59,500. The salaries are paid on October 5. Which of the following is the journal entry for the payment of salaries?
A) Salaries and Wages Payable 59,500 Cash 59,500 B) Salaries and Wages Payable 74,500 Cash 74,500 C) Salaries and Wages Expense 59,500 Cash 59,500 D) Cash 74,500 Salaries and Wages Expense 74,500
Critics of HMOs say that:
A) HMO members have too many choices of doctors they can use and services they can receive B) HMO doctors waste money because they have no incentive to control costs C) the 10% deductible required for every procedure is cost-prohibitive for most citizens D) none of the above